Required

a$.$ Compute the days' sales in receivables for both companies. $($Use year$-$end gross receivables.$)$

b$.$ Comment on the results.

P $6-5$a P$.$ Gibson Company has computed its accounts receivable turnover in days to be $36.$ Required Compute the accounts receivable turnover per year.

P $6-5$b P$.$ Gibson Company has computed its accounts receivable turnover per year to be $12.$ Required Compute the accounts receivable turnover in days.

P $6-5$c P$.$ Gibson Company has gross receivables at the end of the year of $$280,000$ and net sales for the year of $$2,158,000.$

Required Compute the days' sales in receivables at the end of the year.

P $6-5$d P$.$ Gibson Company has net sales of $$3,500,000$ and average gross receivables of $$324,000.$

Required Compute the accounts receivable turnover.

P $6-6$ J$.$ Shaffer Company has an ending inventory of $$360,500$ and a cost of goods sold for the year of $$2,100,000.$ It has used LIFO inventory for a number of years because of persistent inflation.

Required

a$.$ Compute the days' sales in inventory.

b$.$ Is J$.$ Shaffer Company's days' sales in inventory as computed realistic in comparison with the actual days' sales in inventory?

c$.$ Would the days' sales in inventory computed for J$.$ Shaffer Company be a helpful guide?

P $6-7$ D$.$ Szabo Company had an average inventory of $$280,000$ and a cost of goods sold of $$1,250,000.$

Required Compute the following:

a$.$ The inventory turnover in days

b$.$ The inventory turnover

P $6-8$ The inventory and sales data for this year for G$.$ Rabbit Company are as follows:

$\backslash$table$[[,$End of Year,Beginning of Year$],[$Net sales,$$3,150,000,],[$Gross receivables,$180,000,$$$160,000$